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To put it simply, the Internet of Things, abbreviated IoT for short, is a large system of technology. This technology can consist of digital machines, mechanical devices, computing devices, or even objects that all have unique identifiers associated with them. These objects have the capability to transfer data of all kinds through networks. This action does not require any human interaction in order to work. Essentially, to be a thing in the IoT, the object only needs to have an IP address associated with it and the capability to transfer data over a network.
For commercial real estate, tech adoption has been a slow process. Because CRE centers around networking and creating connections, technology hasn’t always been on the mind, especially with older generations. Tech has already made quite a few changes to how CRE professionals work. Tech has influenced CRE through the use of smartphones and tablet to access documents, CRM and operations platforms that help with key things like lead generation, market understanding and data platforms that save time and money previously spent on research. With all of the data collected and integrated into systems, CRE tech allows for real time answers to questions that previously represented themselves as huge time wasters.
Smart buildings are also a huge impact of IoT on CRE. Smart buildings have gotten more and more intelligent over the past 20 years, and are getting even better through advanced sensor technology. IoT is starting to really change the way that CRE operates. More specifically, it has allowed managers, tenants, and even owners to have more control over their various operations of a unit or building.
The creation and design of intelligent buildings that employ the latest technology has become a key focus in CRE development. Prior to the IoT, buildings could only be differentiated by location, size, and layout. Now, there are many more factors to consider.
This improvement in technology allows a greater ability to evaluate properties and their associated sales / debt histories. For investors, this gives you better operating data to evaluate risk, investment options and potential. Owners of these properties will be able to better manage their operating costs in areas such as energy, repairs, maintenance, waste, and any other administrative costs. The added control can take away some of the risk a company takes on by investing or managing a property.
While all of this talk about the IoT may sound far in the future, the truth is that most people working in CRE have already embraced the tech revolution in some form or another. With that said, it is also important to remember that technology is constantly changing. If you’re not on top of how things are being implemented in the professional world, you will be left behind.
Fortunately, surviving the tech disruption isn’t as difficult as it seems. You just need to be open to change and willing to learn new ways of doing old tricks, especially when those tricks involve technology.
Looking for up-to-date, comprehensive commercial real estate data? Reonomy offers CRE professionals real-time access to the data points they need to grow their business — from debt and sales history to zoning and building owner information. Try Reonomy National for free today.